Kolkata: Despite the focus of the world on how to move pass carboniferous fuels for environmental reasons, crude oil still holds the key to the world economy as is evident from the US Iran war. NSE is going to introduce futures on crude oil from next month. NSE is now all set to introduce Brent crude futures and for this purpose it has tied up with S&P Global Energy (Platts). The trading is set to being as early as April 13.
The exchange has also secured the approval of the market regulator Sebi to offer natural gas contracts. But the date of this rollout is not yet clear. It has been said that this will happen sometime in the first quarter of the next financial year. With the launch of these two, the energy derivatives portfolio of NSE will have two important additions.
“Exchange is pleased to inform its members that having received approval from Sebi, Dated Brent Crude Oil (Platts) Futures contracts would be available for trading in the NSE commodity derivatives segment with effect from April 13, 2026,” NSE said in a statement.
WTI crude contracts
NSE already offers crude derivative contracts on West Texas Intermediate, another variety of crude oil, which is usually slightly cheaper than the more popular Brent crude. The launch of Brent crude and natural gas futures, NSE will have a more significant presence in the energy derivatives market. In India, MCX is the more dominant of all the commodity players.
Trading in crude oil: Things to consider
According to brokerage Angel One, one needs to consider a few points before proceeding to trade in crude oil. It is a volatile market that is influenced more by geopolitics than by anything else as well as the production schedules of various countries and groups. Therefore, the following things have to be kept in mind:
Market volatility: Crude oil prices are volatile and impacted by geopolitical events and supply-demand shifts. Therefore, short-term predictions are complicated. Traders have to be updated with reliable market information.
Economic indicators: Global economic growth directly influences demand for crude oil. Therefore, one should be aware of economic indicators.
Renewable energy trends: In the long run, crude oil’s role will be diminished by the rise of renewable energy. So this trend is something one should be aware of.
Regulatory environment: One has to be aware of what the regulatory changes that Sebi introduces in this sector. Staying updated on government policies, environmental regulations and tax rules can lead to smooth trading operations.
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